Please Answer question
1)At what stage of moral development in Kohlberg’s model do you reason at in making decisions? Do you believe your level of reasoning is consistent with what is expected of an accounting professional?
2)According to the 2020 Global Study on Occupational Fraud and Abuse, a tip is the most common way to report fraud. What should be the ethical considerations for employees before deciding whether to blow the whistle on wrongdoing through a tip or organization hotline?
3) Discuss whether an ethical conflict exists in violation of the AICPA rules in each of the following situations:
A senior on an audit receives a gift certificate from a client to the most expensive restaurant in town.
An audit engagement partner attends a baseball game with the client who purchased the ticket.
4)Distinguish between an auditor’s responsibility to detect and report errors, illegal acts, and fraud. What role does materiality have in determining the proper reporting and disclosure of such events?
5) Krispy Kreme was involved in an accounting fraud where the company reported false quarterly and annual earnings and falsely claimed that, as a result of those earnings, it had achieved what had become a prime benchmark of its historical performance, that is, reporting quarterly earnings per share that exceeded its previously announced EPS guidance by 1. One method used to report higher earnings was to ship two or three times more doughnuts to franchisees than ordered in order to meet monthly quotas.
Would you characterize what Krispy Kreme did as earnings management? If so, what type of earnings management is this?
6) Distinguish between the legal concepts of actually foreseen third-party users and reasonably foreseeable third-party users. How does each concept establish a basis for an auditors legal liability to third parties?
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